(Shenzhen Daily)
Updated: 2007-08-06 10:38

Chinese and U.S. officials are holding a series of meetings aimed at bringing accounting methods in line to eventually allow cross-border share market listings between the two countries.

Liu Yuting, director of the accounting regulatory department at China's Ministry of Finance, said Friday talks with regulators at the U.S. Financial Accounting Standards Board and the Securities and Exchange Commission (SEC) are preparing for the day when U.S. and Chinese companies can list their stocks on each others' exchanges.

Liu, who has been in his current post since 2004, initially worked to bring Chinese accounting into compliance with international accounting rules as set by the London-based International Accounting Standards Board (IASB).

Related readings:  Handling the IPO flood  Overseas listing fervor remains  Listing logic Special Coverage: Markets Watch

China expects to sign an agreement next year that will formally bring its accounting practices in line with those of the European Union.

Previously, Chinese companies used accounting methods appropriate for businesses closely tied with the government, but not transparent enough for global markets.

In January, 1,400 publicly-traded Chinese companies switched to the new accounting method, a transition that has gone smoothly, Liu said.

The U.S. Government also is making changes to make global business transactions easier. The SEC is considering a move to allow companies using international accounting standards trade on U.S. stock exchanges. Currently, companies using IASB accounting must file additional records to comply with U.S. GAAP, or generally accepted accounting principles, in order to list on U.S. exchanges.

Liu's department also oversees the accountants who will work under China’s new rules.